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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 228.44+0.5%3:59 PM EST

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To: Bill Harmond who wrote (43924)3/4/1999 6:00:00 PM
From: Sarmad Y. Hermiz  Read Replies (3) of 164684
 
>> And how does it get from the market to the home? Osmosis?

You definitely have a point there. But when you go to the store you get a number of items in that trip. Your cost is spread. Besides, your car is used for commuting to work and for the kids. The UPS truck is only to deliver your 1 pkg.

If the amzn model had a chance of working, they can just sell at same price as physical stores, and charge for delivery. Will people buy from them ? or would they rather drive to the store and pick up their item at supposedly great inconvenience.

If your answer is yes sure why not. Then why do they have to give steep discounts to get customers ?

And if the amzn model is so great, why is it that a convenience store can make profit on $200k per quarter, and amzn can't at $200 Million per quarter ?
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